We all remember the initial shock we got when we received our first cellphone bill after signing up for a two year contract with a specific service provider. It all sounded so nice, easy and cheap to choose a dandy, modern phone with all the various functions at a low monthly rate. What most people only realized later, was all the hidden costs and limitations involved in the contract that one is now legally bound to honor for the next two years. Buying mobile phones outright may save you a great deal of money and frustration, and give you a wider choice.

Traditional cellphone contracts boils down to buying a cellphone at little cost from a service provider. In exchange for the great price, you sign a contract and agree to use that specific phone model with that carrier for a full two years. With a prepaid phone, you may choose a month-to-month service, but often there is a limited choice. With an unlocked cellphone, you have no restrictive ties to any carrier and are free to shop for phones and plans as often as you like.

A new unlocked phone from your favorite manufacturer may initially cost more because it is a once-off payment. However, when the amount is spread over a 24 month period, it may actually be cheaper than your total monthly payments on a two-year contract - especially if you combine it with a cheaper plan.

With unlocked phones, you are not tied to a specific carrier and thus have a wider choice of phones to choose from. These cheaper phones, however, only work on GSM cellular networks using Subscriber Identity Module (SIM) cards. Not all mobile carriers operate on GSM networks and thus one will have to find out which ones are associated with unlocked phones.

People are often disappointed when they cannot upgrade their cellphone contract to include a specific phone of their choice because it is not included in their service provider's package deals. Service providers can only allow a certain amount of manufacturers' products on their networks and thus one's choice is often limited. Without a binding contract, you can pick and choose any trendy unlocked cellphone of your choice from any manufacturer.

There are numerous advantages to outright mobile phones. Not only is one free from the frustrations when experiencing administrative or billing errors with a specific service provider, but one can also shop around for new cellphones and deals as often as one likes. You simply buy an unlocked mobile handset of your choice (without a carrier plan or contract) and a separate SIM card from a service provider or prepaid phone company to activate your cellphone's voice and data services.

These SIM cards are freely available in most countries and can be inserted into any unlocked phone. You can choose between month-to-month services or a longer contract. The SIM card contains your basic information such as phone number, contacts and calling history.

International travelers can benefit a lot by investing in outright mobile phones if they buy a pre-paid SIM card with the local number of their host country. That way they only pay the local rate. If you plan to visit more than one country and want to stay in touch with your loved ones at home, it will be best to get an international roaming SIM card that offers the cheapest roaming rates instead of having to buy a local SIM card in every country you visit.

Another option is to keep your compatible GSM unlocked cellphone with your home number to make calls to family and friends at home. Although the calls and texts will cost you more, you will not have to repeatedly give new cellphone numbers to them from every country that you visit. This is only a cost-effective option if you just want to make a few international calls.

Another option for frequent travelers is to get a mobile device with dual SIM cards. These unlocked cellphones store both your regular SIM card and the SIM card of the country you are visiting. In this way you can receive calls from home on your regular home number and make and receive calls with the lower rates of a local number.

With all the new advancements and technology in the cellphone industry, it is important to stay informed about all the latest trends and products. Outright mobile phones may just be a cheaper and better option for your specific needs!